Microsoft increases its dividend by 10% and announces a $60 billion share buyback program

Microsoft (MSFT) announced Monday that its board of directors approved a $60 billion share buyback program and a 10% increase in its quarterly dividend.

The tech giant announced it would increase its dividend to 83 cents per share from 75 cents. The dividend will be paid on December 12 to shareholders whose shares are listed on November 21. Microsoft said its annual shareholder meeting will be held on December 10.

Microsoft's moves come as the tech giant is under pressure to show that its spending on artificial intelligence (AI) is paying off for investors. Microsoft told investors in July that it plans to increase its spending on AI infrastructure to meet demand that it says is outpacing its capacity.

Previously, Microsoft also unveiled several new AI features and upgrades to its AI assistant Copilot at its Wave 2 event. Updates included general availability of Copilot in Excel, Copilot in OneDrive, and an Outlook email summarization feature, among others.

In a note Monday following the event, analysts at Jefferies said they view Microsoft as one of the “biggest AI beneficiaries,” citing clear early signs of Copilot adoption and improvements in the user experience.

Microsoft shares rose 0.7 percent in extended trading on Monday following the news. They have gained nearly 15 percent since the beginning of the year through Monday's close.